The Supreme Court held that a bank was prohibited under regulation 28(3)(c) of the Russian (Sanctions) (EU Exit) Regulations 2019 from making payments under various letters of credit until licenses to do so were obtained.
This case is significant in establishing that UK sanctions regulations “cast a wide net” and, as in this case, can catch letters of credit that were entirely lawful when issued but subsequently restricted by amendments.
The Supreme Court also concluded that the phrase “in connection with” requires a factual, not a causal, connection and considered the interpretation of section 44 of the Sanctions and Anti-Money Laundering Act 2018.
Read the full judgment here.
